The research is a case study on the issue of limited budget appropriation encountered in the implementation of ODA project loans in the Philippines. It demonstrates how expansionist tendencies in foreign aid manifest in the management of aid by the recipient Philippine Government. Particularly, too much ODA project loans are being approved resulting in limited budget appropriation during implementation. This behaviour is fuelled by imperatives and incentives generated by the good intentions surrounding foreign aid. By focusing on limited budget appropriation as a manifestation of expansionist tendencies, such behaviour is characterized as undesirable as well. Limited budget appropriation is a substantial cause of delay which in turn undermines aid effectiveness. The strength and resilience of these imperatives and incentives enable them to creep into the budget strategy certification process which is intended to address the problem of limited budget appropriation. The conditionalities attached to program loans, on the other hand, embody the intentions and imperatives on the part of donor agencies to influence the development priorities and strategies of recipient governments.

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Brouwers, Ria
hdl.handle.net/2105/7224
Public Policy and Management (PPM)
International Institute of Social Studies

Dumlao, Michael Ramos. (2008, January). Aid Intentions, Imperatives and Incentives: A Case of Too Much Yet Less Effective Aid. Public Policy and Management (PPM). Retrieved from http://hdl.handle.net/2105/7224